Statement Of The Problems Finance Essay - Free Essay Example

Sample details Pages: 3 Words: 912 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? This paper is to test the relationship between management compensation and the dividend payout and the effect of public ownership, state ownership as well as family ownership will be taken into consideration. Dividend policy has long been a difficult task for the directors since it will be influenced by different factors. Different research papers have developed different models for the firms to apply a comprehensive dividend policy. Bhattacharyya and Morrill have figured out a negative relationship between management compensation and dividend payout by incorporating the US firms data into their analysis. However, the corporation feature of US firm is not diversified and complicated as Hong Kong and Chinese firms listed on the Asian stock market. Thus, this paper will perform an empirical research by adopting the Hong Kong and Chinese firms data to investigate the relationship between management compensation and dividend payout. Literature review Br ealy and Myers (2003) have revealed that dividend policy is one of the ten important unsolved problems in the finance society. Up till now, we still not yet fully understand the factors which are influential to the dividend policy. There have been different researches investigating the relationship between dividend policy and the other components. There are several ways to distribute the dividends. In normal practice, most of the corporations would choose to declare cash dividend or stock repurchase. Souml;hnke M. Bartram, Philip Brown, Janice C.Y. How, and Peter Verhoeven has investigated roles of the firms and country level agency conflicts in determining the dividend policy. They found out the relationship between the protection level of the country and the dividend policy; and a negative relationship between investment opportunities and total payouts. That means in a high protection country, shareholders are more willing to receive less dividend for a better investment opport unity. Also, in 2001, Fenn and Liang have showed that management stock options and payouts are negatively correlated and there is a positive relationship between repurchases and management stock options. However, in the last two decades, Chun Chang (1993) suggested that there is a positive linkage between the management compensation and the payout because it can be used to eliminate managers incentive to overretain funds and overspend. In 1987, Lewellen, W. G., C. Loderer, and K. Martin have found the executive pay is systematical to the dividend payout, which the result is consistent with Healys (1985) observation. In 2003, Bhattacharyya has developed a model of dividend policy which elaborates the linkage between dividend and executive compensation based in the principal-agent paradigm. In his model, cash will either by distributed by directors/managers as dividend or re-invested by directors/managers in some positive net present value projects. There will be two class ifications to distinguish different types of managers: High quality and low quality. His model assumes that high quality directors would invest the cash in some net present value projects while low quality directors would distribute cash in form of dividend to the shareholders. In other words, high productive directors getting higher pay would distribute fewer dividends than low productive directors getting lower pay. Empirically, it proved that there has been a negative relationship between management compensation and dividend payout. In 2008, Bhattacharyya and Morrill have conducted a tobit regression test using the US firms data to develop a more formal model related to the management compensation to the proportion of earnings paid out as dividends and document empirical support for the hypothesis arising from the previous model. The result has perfectly revealed that management compensation and dividend payout are negatively correlated. However, it is difficult to judge wh ether those research can be applied to either Asian countries or Hong Kong because they are based on the foreign market data. The typical features of Hong Kong and Asian countries should be state-ownership and family ownership corporations. There are limited papers discussing about the relationship between the management under different ownership types and dividend payout. Most of the researches are based on the data extracted from the US firms (Publicly ownership). In 2003, Klaus Gugler found that state-controlled firms have large target payout ratios while family-controlled firms have a lower one but the data is based on foreign stock market. Objective of the study Dividend policy is a fundamental strategy in corporate finance because it is influenced by different unknown factors and will influence other components accordingly. A comprehensive payout policy would contribute to a better corporation performance in the future and present. At the same time, management compensati on policy would also affect the overall performance of the corporation. With an appropriate compensation policy and payout, the corporation would be able to have a better performance as well as to attract more investors. Thus, it is essential for us to understand the relationship between payout and management compensation. Although there are researches discussing about its relationship, there are limited researches investigating into the Hong Kong and Asian market. It is difficult to judge the appropriateness of Bhattacharyyas model as it is based on the US firms data. The objective of this paper is to investigate whether the Bhattacharyyas model and the former research papers can be applied to the Hong Kong and Asian markets which are very different from US firms. This paper conducts an empirical research by using Hong Kong listed corporations (majority) and the other significant Asian listed corporations to test if management compensation alone, management compensation of a sta te-controlled corporation or management compensation of a family controlled corporation will affect the payout ratio. Statement of hypotheses Methodology Time schedule/action plan Don’t waste time! Our writers will create an original "Statement Of The Problems Finance Essay" essay for you Create order

Marijuana Advantage and Disadvantages - 1760 Words

Abstract People should pay attention to the controversy about marijuana. Marijuana may not kill in a situation such as an automobile accident. In this paper it talks about the risks and benefits of using marijuana. Suicide, mental disorders, and worse depression can be bigger risks of using marijuana. All together marijuana can be less dangerous than other things such as alcohol and other drugs The medical benefits of marijuana are very helpful. Marijuana can relieve the pain of AIDs, multiple sclerosis, and the pain of heavy chemotherapy. It relieves the pain of glaucoma on the eye. Prohibition is similar to the controversy about marijuana. Many wanted alcohol outlawed just like marijuana. Even though alcohol was prohibited there were†¦show more content†¦The only exceptions were for medical and religious use. Prohibition used to be a major reform movement from 1840 to 1920. The reform was sponsored by evangelical protestant, Methodist, Baptist, Disciple, and Congregationalist churc hes. Kansas and Maine adopted this reform early. In 1847, the Women’s Christian Temperance Union would be founded founded, in which the Prohibition party used to be a major player until the 20th century when the movement was taken over by Anti-Saloon League. Prohibition was instituted with ratification of the Eighteenth Amendment to the United States Constitution on January 16, 1919. Congress passed the Volstead Act on October 28, 1919, to enforce the law, but most large cities would be uninterested in enforcing the legislation, leaving an understaffed federal service to go after bootleggers. Although alcohol consumption did decline as a whole, there was a rise in alcohol consumption in many cities along with significant increases in organized crime related to its production and distribution. The sale of alcohol would be illegal, but alcoholic drinks could still be widely available. People also kept private bars to serve their guests. Large quantities of alcohol could be smuggled in from Canada, overland, by sea along both ocean coasts, and via the Great Lakes. The government cracked down on alcohol consumption on land within the U.S. It would be a different story on the water where vessels outside the 3 mile limit would be exempt. LegalShow MoreRelatedAdvantages And Disadvantages Of Using Marijuana1063 Words   |  5 PagesMarijuana usage has several advantages and disadvantages. Starting off with the advantages, one of the primary reasons as to why marijuana use is so prevalent is because it helps the users relieve stress from school, work, and other responsibilities in their life. From personal experience, I’ve dealt with stress ranging from academic work to relationships, so I know how difficult it is to juggle so many things at once. Another advantage of mari juana use is that the THC chemical causes the brain toRead MoreAdvantages And Disadvantages Of Cannabis Legalization1614 Words   |  7 PagesTitle Page Assess the advantages and disadvantages of Cannabis Legalization in Australia Contents Title Page 1 Introduction: 3 Cannabis dugs: 3 Use of Marijuana in Australia: 4 Advantages of Cannabis legalization in Australia: 5 Disadvantages of Cannabis legalization in Australia: 5 Conclusion: 7 References: 8 Introduction: Currently drug abuse is the issue that has plagued almost all the societies in the world. This problem poses serious threat to the life of peopleRead MoreShould Cannabis Be Legalised?1595 Words   |  7 PagesShould cannabis be legalised in Australia? Your response should provide a considered discussion of the advantages and disadvantages of both legalisation and criminalisation which shows evidence of wide and varied reading. 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Essay1223 Words   |  5 Pagesthat the marijuana industry has had on the economies of the states which have legalized recreational marijuana use for consumers over the age of 21. Many predictions were made referring to the outcome of marijuana legalization, however, most predictions made did not foretell the actual outcome. The act of legalization in the state of Colorado has yielded many advantages in the field of marketing. With these advantages, however, come many disadvantages. This study will identify how marijuana legalizationRead MoreThe Risk Of Legalization Of Marijuana Essay722 Words   |  3 PagesThe risk of Legalization of Marijuana Marijuana, as we know, is a kind of drug. According to Thompson (2015), marijuana is not only one kind of drug, but also can be used as a medicinal material. The reason it can be a medicinal substance is that marijuana has a curative affect of relieving pain. Despite different states having a variety of regulations about the usage of marijuana, there is always one rule that is unified, which is the medicinal usage of marijuana must be approved by the FDA—theRead MoreINTRODUCTION Marijuana is a dried out weed that mixes the leaves, stems and even the flower of1100 Words   |  5 PagesINTRODUCTION Marijuana is a dried out weed that mixes the leaves, stems and even the flower of cannabis, or the hemp plant, which is then taken into the body by either smoking or eating. Marijuana was invented in 2737 B.C in china where it was used as treatment for malaria and absent- mindedness; it then got to United Kingdom in Jamestown in 1611, which was then seen as a cash crop. Marijuana is seen to be one of the most dangerous and addictive drugs in the United Kingdom. The amount of young teenagersRead MoreShould Marijuana Be Legalized? Essay1587 Words   |  7 Pages Legalization of Marijuana Marijuana is not a recent discovery, but the mysteries surrounding the controversial topic in question remains to be disputed since its prohibition. Classified as an illegal substance, cannabis has been restricted in Canada and around the world. Marijuana is a complex drug and its contradictory claims of medical purposes, and harmful destruction, fuel the debate on whether or not the legal constraints of consuming marijuana should be reconsidered. In consideration of academicRead MoreWhat are the benefits and drawbacks of legalising marijuana964 Words   |  4 Pagesï » ¿Marijuana is the most extensively used illicit drug in the world, which is a controlled substance, and it is illegal to produce, use, and distribute in most countries. Despite this, marijuana has been legalised in some areas of Australia (Joffe Yancy, 2004). Consequently, the debate about legalising marijuana has been discussed over decades. 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Humans, Omnivorous or Vegetarians Free Essays

Some people are ‘meat lovers’ while others fiercely reject the idea of humans eating meat. Perceptions and love/hate for meat vary according to each ideological frame and culture. However, this informative essay will not address the perceptions and preferences that people might have. We will write a custom essay sample on Humans, Omnivorous or Vegetarians or any similar topic only for you Order Now It depends on a scientific debate with those who think that prehistoric man was vegetarian in nature and therefore humans should not eat meat and those who think that humans have always been omnivorous which means that we can eat seeds, grains, plants, fruits, but also animals.Through this essay I will defend that it is normal and natural that humans eat meat, in contrast with the vegetarian’s arguments, however it is healthier if we do not eat great amounts of meat per week. An argument defending human as vegetarian is centered on the characteristics of the human body compared to carnivorous animals. It argues that because humans don’t have claws or pointed teeth we shouldn’t eat meat. However, I found that the digestive and dental system of homo sapiens serves as an example on omnivorous adjustment because the incisor teeth and canine are good to tear cooked meat into pieces, whereas the molars are needed to grind vegetable matter. Furthermore, vegetarians argue that carnivorous animals have smaller intestines than humans because raw meat needs to be defecated faster, so it won’t turn bad before it can be digested. However one argument to counter this position is that humans can’t be totally vegetarian either because plant material containing fiber and cellulose cannot be efficiently broken down by the enzymes our stomachs secrete and because humans have simple-chamber stomach while herbivores have multiple-chamber stomach. This reinforces the argument that humans are omnivorous because our bodies are not totally prepared for such big amounts of meat, like carnivorous animals, nor for all kinds of plants. Rather we should have a balanced meal. Another argument sustained by vegetarians is that the man came before the fire and therefore humans only ate fruits and vegetables. Further that human disguise the meat with culinary preparations because â€Å"we cannot tolerate raw meat†. However, I found out that It all depends on a matter of evolution and adaptability. If we go back thousands of hundreds years ago when humans where similar to chimpanzees, maybe the vegetarian argument is true: humans were vegetarian. But with the same logic as we started walking on two feet because it became a necessity, our body adapted to eat meat when frost came over and eliminated all plants and fruits. Therefore, humans evolved. Homo sapiens started using pointed weapons so claws fell to disuse, homo sapiens discovered fire and found out that it made the meat softer so our canines got smaller. Our molars got flatter because of the cooked-meat diet, as well as the infusion of fruits, nuts and veggies. Furthermore, the vegetarian argument that â€Å"everything that the human body needs can be found in natural vegetation†, does not mean that we are, in fact, vegetarian. Rather it means that if one person decides to be a vegetarian, he/she can survive without the proteins provided by meat. Therefore, being vegetarian is a personal decision, not a fact applying for everyone. One should decide consciously what type of food you want to eat, but bearing in mind that eating meat is not a bad thing for our body per se because our body is prepared to it, along with fruits and vegetables. Most uninformed vegetarians argue that meat is causing health issues, but the truth is that the today’s growing population is demanding great amounts of food focusing on quantity over quality. Many animals are been feed with steroids while fruits are been cultivated with chemical substances. How to cite Humans, Omnivorous or Vegetarians, Essay examples